Bi-Weekly Loans; Bi-Weekly Term Reduction And Payment - Calculated Industries 3420 User Manual

Bi-Weekly Loans

Your calculator includes a built-in Bi-Weekly loan function (s T),
which allows you to convert established, fully amortized monthly loans
into Bi-Weeklies (in which one-half the monthly payment is made
every two weeks). Because you make two extra half-payments per
year (since 26 Bi-Weekly payments is like making 13 payments/year),
these kinds of loans can amount to large interest savings and a sub-
stantial reduction in the time it takes to pay them off.
You begin these problems by setting up the initial monthly loan and
then pressing s T. A second press of T shows the total
interest savings over the entire loan, a third press calculates the
total interest paid, a fourth press shows the total principal paid, and
a fifth press shows the total payments. A press of p will calculate
the Bi-weekly Payment.

Bi-Weekly Term Reduction and Payment

Find the monthly payment on a 30-year, $212,500 loan at 7.85%
annual interest. Then convert it to a Bi-Weekly and find out how
many years it will take to pay off this loan, the total interest savings,
total payments and the Bi-Weekly payment.
STEPS
Clear calculator
Enter Loan Amount
Enter Term in years
Enter annual Interest
Find monthly P&I Payment p
Find Bi-Weekly Term
Find total Interest savings
Find total Interest paid
Find total Principal
Find total Payments
Find Bi-Weekly Payment
Clear calculator
KEYSTROKES
o o
2 1 2 5 0 0 l
3 0 T
7 • 8 5 ˆ
s T
T
T
T
T
p
o o
DISPLAY
212,500.00
30.00
"run" 1,537.09
"run" 22.97
94,305.23
246,545.97
212,500.00
459,045.97
768.54
U ' G — 65
SER S UIDE
0.00
7.85
0.00